Multiple Choice
A bank has excess reserves of $5,000 and demand deposits of $50,000; the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, then this bank can lend a maximum of
A) $1,000.
B) $1,500.
C) $2,000.
D) $2,500.
Correct Answer:
Verified
Correct Answer:
Verified
Q227: A commercial bank's reserves are<br>A) liabilities to
Q228: The goldsmith's ability to create money was
Q229: <span class="ql-formula" data-value="\begin{array} { | c |
Q230: In an uncontrolled or unregulated system, commercial
Q231: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" The accompanying table
Q233: If a commercial banking system has $200,000
Q234: The basic reason why the commercial banking
Q235: If actual reserves in the banking system
Q236: How are bank customers protected against bank
Q237: Given a 25 percent reserve ratio, assume